Padgett Stratemann is now RMSAs San Antonio becomes a bigger player in Texas Business, more national firms are entering this market. A national firm does not start from zero. RMS (http://rsmus.com/) purchased Padgett. This gives the buyer a large client base to start with. Typically the local partners have made a handsome profit on their time at the firm. But seeking to recoup the investment, the buyer typically raises fees knowing some business will be lost. RMS has re located from North Loop 410 to 1604 and 281. Renee Foshee, a tax expert with the firm, is the current SA CPA Society President.

Turner Cleveland PCTerry Cleveland has addressed our students. Two of our graduates are employed with at this firm.

Ridout Barrett CPAsTony Ridout has visited and addressed our students many times. We have placed graduates with Ridout for several years.

Financial Consulting Firms

Aventine Hill Partners, Inc.Beth Hair CEO founded Aventine in San Antonio in 2009. The firm now has offices in Dallas, Austin, San Antonio, and Houston. She formerly was with RGP.

Resource Global ProfessionalsSusan Hough has been to campus and spoken to our students. She is the San Antonio Manager of RGP. RGP and Aventine are not CPA firms. Instead they offer contract specialists for firms needing specific tasks such as compliance or Controllerships.

Accounting Information

Acounting Today This is an independent site for accounting news regarding firms and current issues.

Accounting Certifications

Certified Information Systems Auditor CISANow that everything is literally on the computer and cyber security becomes a prominent issue, I see more and more accounting professionals with this designation. Previously known as the Information Systems and Audit Control Association, it now goes by the acronym ISACA.

Geo Politics

Institute for the Study of WarThe Institute for the Study of War advances an informed understanding of military affairs through reliable research, trusted analysis, and innovative education. We are committed to improving the nation’s ability to execute military operations and respond to emerging threats in order to achieve U.S. strategic objectives. ISW is a non-partisan, non-profit, public policy research organization.

StratforThis Austin, TX based site was begun by an ex Texas State Professor.

Socionomics

January 31, 2012

Thanks to an alert student for noticing the Six Blind Men link did nto work, I had copied this and the link did not copy, it works now.

Jean Shepherd's Chirstmmas Story has become the 'new classic' Christmas Video displacing Miracle on 334th Street and It's a Wonderful LIfe. The movie recounts Shepherd's youth in the mid West. The time is pre WW II and radio is the dominant technology. Ralphie responds to the Little Orphan Annie broadcast by requesting his own 'Secret Decoder Ring.' Finally it arrives via the mail.

Anxious to find out what Little Orphan Annie has to tell, he retreats to the bathroom where he begins decoding the message. Of course his little brother starts banging on the door, the tension mounts, will Ralphie decode the message or be tossed out before he is done.

And the message is -Drink Your Ovaltine, the shows' sponsor, as Ralphie observes, hte secret message is just a crummy commercial.

Well, whether it's training for Mr./Miss Olympia or accounting, there is NO secret decoder ring that will somehow relieve one of the necessity of 'working out.' There's only one way, hit the gym, either physically in the first instance or mentally in the second.

My point is that participants will have to participate. I don't know what you don't know. One student did come by my office for an hour and I was able to get some insight into what I suspect is the overall level of confusion about accounting.

I do plan to offer a quiz early on for each intermediate class. By offer I mean this is the chance for both of us to gauge your progress, and for you to learn what it is that is giving you difficulty. So if we are going to have successful study sessions, participants will need to do the following.

Now here is the To Do List.

1. As the Mike Phelps Swim Coach put it, Get in the Water! Phelps has won 16 Olympic Medals. His coach reports that Phelps swims every day of the year-Christmas, New Year, his birthday, all 365. Accounting is a mechanical organization system, not that different from the Dewey Deciamal system in the library. Accounting is a whole lot more than bokeeping. You will need to understand statistics, finance, accounting and markets to grasp what is going on. Adopt a daily routine that immerses you in accounting and finance, now. Get in the Metaphorical Water.

The grade I was the most proud of in college was my B in

Poetry and Prose reading English 314K I think it was. Listening to the teacher explain what the poet meant, was to me, considerably more difficult that discerning accounting. After all the assets always have a left side balance, I never did quite know what those poets were trying to tell me! And the source of her opinions was always a mystery to the class. I recall hearing that back then one class actually contacted one of the poets and he reported a different meaning. But my point is this, If I had taken the attitude that the class was a waste, and the teacher was some incomprehensible weirdo, I doubt I would have made a good grade.

One friend once told me that most students hate math and arithmetic because their third grade teacher hated it and said so. Hence a dislike for things quantitative was planted early, and has only festered over the years. Time wasted in arcane stuidies of factoring polynomials in algebra only results in a 'what would I ever do wtih this attitude'. Most students canot work my simple word problem and solve backwards for what they pay for merchandise at the store. Factoriong polynomials and struggling over problems like - Your brother is 2/3 your age and your cousin is 1 3/16 as old as he is, how old is your dog, only makes it worse.

All of which is to say, you have been poorly served by the quantitative education community to this point. I pepper my presentations with lots , perhaps too many, examples of real world companies and why they are succeedig or failing. That is the whole point of learning accounting, it helps us analyze success or failure.

So, the world is not going to abandon accounting and replace it with zernog or some other new invention for trackig money. So, make friends, relax, and let me lead you where you need to go.

2. It's a simple concept. Assets and expenses ahave left side normal balances, revenue, liabilities, and equity have nominal right side balances, and that is all there is to double entry accounting, it is just that simple.

3. During the summer of my college years I worked as a lifeguard and taught swim lessons. You have to get in the pool, get your face wet, and learn to float. Grasping number 2 above is the equivalent of learning to float.

4. It has been said that the way to learn to play basketball is to watch someone else first, and then try to dribble the ball. You will learn a lot by examinging fiancial information. I have listed several links on this blog, try them out, start reading, look at the statements of your favorite company, what do they say, why is AMR a bust and RL a rousing success?

How many of you turn to CNBC or Bloomberg in the morning as you get ready for work. The discussions are good, you will learn something listening, try it.

I love what I do. I was up at 5:00 AM this morning reading what the Asian markets did, how the US would open, what was the price of gold, how 25 Euro leaders had concocted yet another umpteenth deal to bail out Greece, yep it's all here, politics, intrigues, warfare, embargoes, a genuine Tom Clancy thrill ride that leaps from Iran to Greece to Shanghai and back again. To make money in these markets you need the reflexes of Jason Bourne and the agility of Jackie Chan. Gypsies tramps and thieves abound ( with my apologies to Dan Glaser's gypsy friends in Romania...) from Bernie Madoff to Jon Corzine, a US Senator one day and a rogue the next, wait, was there a difference?

I noticed a Maserati GT parked at the neighborhood tennis court while walking Bentley this past weekend. Gee massive cross drilled rotors to handle the (I would guess) 175 mph top speed, unless it is electronically limted to less than that. Hm does one really need this to get down our street, speed limit 35, to the tennis court.

Uh no, but then one does not need a diamond necklace either, and how fast will a neckalace take yo anywhere? Here are the ten fastest cars. I never heard of half of them but my point is, this is flaunt it while you got it social mood, only seen at or near the top of markets.

We are studying bonds in intermed accounting. Yesterday I menioned in class that interest rates on Portugal's debt were soaring. Read about it in Market Gives Up on Portugal.

the right hand scale is the interest rate. Bond prices for Portugal are falling in dramatic fashion as interest rates soar. As I said this indicates the market expects Portugal to default. I expect that it has been possible to short most of Portugal's debt and that has increased the yields further. A short means that investors have sold Portugese bonds betting on lower prices.

The 2008 financial crisis was the result of too many people unable to pay their mortgages and too many banks and brokers leveraging a bet that the could or would be backstopped by the government.

I have mentioned in class that the next crisis will likely be student loans. This article details that Salle Mae is actually charging forbearance fees for those that cannot pay the loans now. Geographic Mapping is not a bad major except when there are hundreds of other GPS experts out of jobs.

Agin there is no collateral for a student loan unlike the sub prime mortgage crisis.

January 30, 2012

Legendary Jim Rogers won't be buying shares in an IPO for Facebook. As he notes the sellers are usually smarter than the buyers.

My guess, and I don't know when the IPO would be scheduled, is that the market wil probably top in the same timer period of the IPO. The biggest IPO in history after the 20087 meltdown, would be an inclusionary socionomic moment, just the event to cap the recent run from 1075 to what, say 1400 on the SPX.

Welcome to our first audio post on Professor Elam. Today we highlight articles in the Monday Jan 30 WSJ. The idea is to explain why and how students would profit from a WSJ subscription. With your computer speaker turned on or your headphones plugged in you should be able to hear this clip.

Front page, MF Global, as we thought, the customer money is likely gone.

Note the article on South Carolina's pension fund on page C1. Note the graphs on page C3 which show that it is coming up short of its funding assumptions. This is precisely what caused Meredity Whitney to issue a warning about municipal bonds. So far her detractors have been correct, nothing has happened and muni bonds have rallied after selling off after her prediction. But, something has to give, states and cities cannot underfund pensions, deliver services, and keep the perks that unions in Wisconsin are demanding AND pay the muni bond holders.

Tucked away on page B9 is a note that UPS and Honeywell have adopted mark to maret (fair value) acocunting for its pension plans. And UPS took a $827 M pre tax charge for losses in the plan. Ouch!

We study investments and pensions in Intermed I. We will be spending more time on derivatives and investments in Intermed I this semester.

Page C5 features a positive article on gold coin buying This precedes an interest in metals investing. We recommended going long GDXJ and CEF at the end of December.

And on page C8 The Euro looks for More Gains. This backs up our belief that the US Dollar will fall probably during February.

January 29, 2012

I spotted this book in Texas Monthly. SMart Thinking has six great reviews here at Amazon.

Sounds like a good read to me! Oddly there are few to no courses on how to succeed in college. Looks like this would be a GOOD START. Here is one review.

Art Markman is a leader in the field of cognitive psychology and is someone who has made an impressive career by studying how people think. His book Smart Thinking is, well, smart. Engagingly written, Markman describes the most effective ways for people to approach, think about, and learn about new problems.

This should be required reading for any student coming to college, new employee starting a career, or anyone who wants to be more thoughtful in life. Part "how-to" and part good science, this is a fun book to read. When you're finished, you will have a better understanding of how toilets flush, why proverbs are helpful, and why multitasking is evil.

January 26, 2012

Second Saturdays at TAMUSA are our free film festival. February is my turn. If I had my way, and in this instance I do, every student would be required to view and write his or her impressions about this film.

This is not To Sir With Love. More like, having Darth Vader for the Dark Arts course at Hogwarts. John Houseman plays Professor Kingsvfield, advisor to Presidents and the Supreme Court and recognized authority on his topic-Contract Law.

Timothy Bottoms plays the ubiquitous freshman law student Hart. Kingsfield's class transforms Hart. As he remarks in the most important scene in the film

It's only Octoer, and already half the class has given up.

Yep the gang is all here as the students form a study group and outline their share of hte assignments. The obsessive dismissive know it all with his 800 page outline, the thoughtful student, the up against a force he can't handle student, and the rest of the rabble, not really up for the contest. No doubt you will recognize some of your former class mates portrayed in the film. Times change, students don't.

Previous students tell me they insisted their teenagers watch this film with them, bring them along, it's not too early to set life goals.

I will have some history on the film, movies about teachers, and why this is One of the Essentials.

See you Second Saturday at 6 PM. A quiz grade for those that post a good review and refllection on the BB Discussion Site.

The War of Art by Steve Pressfield is all about overcoming Resistance to find your inner creative self.

All three of my sections have a writing assignment utilizing Emerson's Self Reliance and Kirk Tuck's Lonely Hunter. I suggest if you enjoyed those, click on the link and read the synopsis of Pressfield's first non fiction book.

I have a copy if any one would like to read it and review it for the class.

Now my point is this, in the Ethics class the entire class was assigned a submission to our SWTLC confernece. I have only seen a about three of what should be ten submissions posted thus far on the Discussion site. Only a handful have posted their essay on Emerson due this weekend.

While the Ethics class meets every other saturday that should not be the template for activity in the class. By now each team should have an outline for their business case. It should feature the prominent individuals, a time line, and the relevant facts of the case. Each day the team should be scanning headlines for recent events or similar events that would add depth and dimension to the case. And at the same time, what ethical constructs are involved? One student came by to retrieve a book from my library about her central character. In our short visit it was clear resasearch was lready underway as she mentioned some things I did not know about the case. That is the way to bulid the case without burning midnight oil, the easy way not the hard way.

The intermediate classes are reviewing adjusting entries and such. Students should be ramping up their study efforts.